Auto battery maker expands
A Watertown, Mass. maker of batteries for electric vehicles has landed a major contract and announced expansion of its manufacturing facility.
WATERTOWN, Mass.:A123 Systems, a developer and manufacturer of lithium ion batteries and systems, announced a battery supply agreement with Fisker Automotive, a new American automaker building electric vehicles.
A123 will supply battery systems for the Fisker Karma Plug-in Hybrid Electric Vehicle (PHEV), scheduled to be launched in late 2010 and touted as one of the cleanest, most fuel-efficient cars available.
This deal came on the heels of a plant expansion made possible by a $249 million grant award from the US Department of Energy (DOE) to expand the final cell assembly capacity at its 300,000-square-foot plant in Livonia, Mich.to 200 MW hours from 169 MW hours.
The expansion results in sufficent capacity to supply 1.1 kWh battery systems for more than 320,000 hybrid vehicles , or 24,000 PHEVs with 15kWh battery systems per year.
Fisker Automotive and A123 will also collaborate on Fisker's Project Nina platform, expected to launch in 2012.
"Fisker Automotive selected A123 because of the company's ability to meet our performance needs and rapidly scale to our production volume," said Henrik Fisker, CEO of Fisker Automotive.
The multi-year agreement provides that A123 is the selected battery system supplier for the Fisker Karma. A123 plans to manufacture the cells and systems at its Livonia, Mich. facility with production slated to commence later this year.
"We believe the opportunity to supply batteries for Fisker's premium plug-in hybrid vehicles is further confirmation of the competitive advantages of A123's technology, including our ability to deliver on the critical safety, high power, useable energy and extended life requirements for PHEV applications," said David Vieau, President and CEO of A123 Systems.
The Fisker Karma is expected to have a range of 50 full-electric miles on one charge of A123's lithium ion battery system and a total range of 300 miles with an on-board generator turned by a traditional but efficient four-cylinder gasoline engine. The Karma features 403hp and goes from 0 to 60 mph in about six seconds, reaching a top speed of 125 mph.
In addition to entering into the supply agreement, A123 also announced its intent to invest up to $23 million in Fisker Automotive's current funding round in order to establish a strategic relationship with the car company. The contemplated investment would consist of $13 million in cash and $10 million in A123 common stock and would be subject to the completion of certain terms and conditions.
PHOTO: Fisker Automotive
